Nxt-ID (NASDAQ:NXTD) Shareholders Have Enjoyed A Whopping 346% Share Price Gain

It certainly was a quite a shock to see the Nxt-ID, Inc. (NASDAQ:NXTD) share price fall -38% in the last week. But that isn't a problem when you consider how the share price has soared over the last year. In fact, it is up 346% in that time. So we wouldn't blame sellers for taking some profits. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

Check out our latest analysis for Nxt-ID

Nxt-ID wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Nxt-ID actually shrunk its revenue over the last year, with a reduction of 25%. So it's very confusing to see that the share price gained a whopping 346%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Nxt-ID's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Nxt-ID has rewarded shareholders with a total shareholder return of 346% in the last twelve months. That certainly beats the loss of about 11% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Nxt-ID better, we need to consider many other factors. Even so, be aware that Nxt-ID is showing 3 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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